The Government of Prince Edward Island and three private sector companies signed a two-part agreement today that will create 73 high-tech jobs, give Island businesses greater access to world markets and support long-term, sustainable development of information technology in the province.
The first part of the agreement will lead to the establishment of an information technology centre operated in partnership between two Charlottetown-based businesses – DeltaWare Systems Inc. and Island Tel Advanced Solutions (ITAS). Backed by a strategic alliance with GE Capital Information Technology Solutions, the centre will generate 73 jobs that will provide services to government as well as to other public and private organizations in the region and beyond.
Under the terms of a $5 million Industrial Benefits Agreement that forms the second part of the overall agreement with government, GE Capital Information Technology Solutions committed to maintain a business development office in PEI. It also promised to seek opportunities for the company to invest in the province and for a broad range of Island companies, including aerospace, bio-technology, diversified manufacturing and the IT sector, to sell products and services to the worldwide General Electric organization.
Premier Pat Binns praised the agreement as an "innovative and cost-effective" approach to providing technology support services to government while increasing access to international opportunities to develop PEI industry. He also pointed out that the private sector jobs are being created with no financial incentives from government.
"The centre is an Island-based, economic partnership that will grow the province's information technology capability to compete across the country," said Premier Binns. "Through this strategic alliance with an international firm, Island companies will have access to the many opportunities available through a worldwide network."
During the four-year term of the contract, the information technology centre will be the primary provider for government's Oracle-based information management solutions and network management services. Furthermore, to minimize the cost to the province while ensuring that the technologies used in delivering government services are up-to-date, GE Capital IT Solutions will provide computer equipment through a Technology Asset Management Leasing program.
Mitch Murphy, Minister of Technology and Environment, who signed the agreement on behalf of the province, described the occasion as a major step in realizing government's goals in creating new jobs and developing the IT industry in this province.
"The 73 jobs created by these agreements demonstrate the confidence that the local private sector and national and international firms have in the IT industry in Prince Edward Island and our ability to be competitive in world markets," said Minister Murphy. "The message is rapidly getting out as to the capabilities of the province. We expect a series of innovative IT initiatives to follow."
Minister Murphy also emphasized that these agreements will put additional dollars in the pockets of local IT firms. "GE Capital IT Solutions will utilize local firms to provide all hardware installation and warranty work. These agreements also give government access to the latest technology and will allow government's internal IT function to focus on its core, in-house competencies," said Minister Murphy.
The agreement will lead to the creation of an Oracle Competency Centre by leveraging DeltaWare's existing expertise to provide Oracle-based solutions to organizations which do business in the global economy. DeltaWare's expanded Oracle practice will give PEI the ability to compete in areas of leading-edge technologies where there is growing demand and tremendous opportunities.
"We look forward to the national and international opportunities that this partnership provides, building on both DeltaWare's and the province's existing relationship with Oracle Corporation Canada Inc.," said Ed Lawlor, President of DeltaWare Systems Inc. "We are excited about this new venture and the potential it has to bring new business and highly skilled jobs to PEI as we pursue a greater share of this burgeoning market," he said.
A new, world-class Network Management Centre will be another by-product of the agreement. It will be established by leveraging the combined expertise of ITAS and GE Capital IT Solutions and will compete nationally in the expanding network outsourcing business sector.
Don MacKinnon, Minister of Development, signatory to the Industrial Benefits Agreement, said GE Canada Inc.'s commitment to invest $5 million in the Industrial Benefits Agreement with the province will help Island firms by linking them with a leading international manufacturing, technology and services company.
"To have companies such as GE Capital IT Solutions and Aliant supporting this province's economic development initiatives bodes well for the success of these agreements," he said.
Representing Aliant, regional parent company of ITAS, Stephen Wetmore, President and CEO said, "The approach which ITAS took by working with government and other private sector participants in order to achieve results beneficial to all parties fits nicely with Aliant's expansionary mandate and is a prime example of why Aliant was formed."
"Aliant was created as a strong engine of growth for Atlantic Canada," he said. "This initiative clearly demonstrates that we're prepared to put the power of that engine to work here in PEI and throughout the region, resulting in new opportunities for the people of Atlantic Canada."
Ron Waite, President of ITAS, emphasized that his company is ready to help build a world-class network management centre that will allow Islanders to compete at all levels of the fast growing network management business. "We will accomplish that goal by using the strength of the Aliant group of companies," he said.
Bob Gillespie, Chairman and CEO, GE Canada Inc., reiterated his company's intention to build a strong presence in Prince Edward Island through the Industrial Benefits Agreement.
"It is our commitment to build a long-term relationship with GE Capital IT Solutions, the province and businesses of PEI," he said. "By working together, we can identify opportunities in support of the province's growth and local industry."
Contacts: Honourable Mitch Murphy, Minister of Technology and Environment, (902) 368-4863; Honourable Don MacKinnon, Minister of Development, (902) 368-4230; Tania Ensor, DBA Communications (416) 465-6385; Jennifer Dicks, Aliant, 1 877-2ALIANT; Bob Kelly, Island Tel Advanced Solutions, (902) 566-0107; Peggy Roach, DeltaWare Systems Inc., (902) 628-3743.
QUICK FACTS:
AN INFORMATION TECHNOLOGY CENTRE
INDUSTRIAL BENEFITS AGREEMENTS
An Information Technology Centre:
A partnership between Charlottetown-based DeltaWare Systems Inc. and Island Tel Advanced Solutions (ITAS), with a strategic business alliance with GE Capital Information Technology Systems.
Created by an investment of $3.3 million by the consortium partners.
To create an Oracle Competency Centre and a world-class Network Management Centre.
Designated as the primary service provider of Oracle-based information management solutions and network management services to the provincial government.
Government to invest in maintaining government's base of computer equipment through a Technology Asset Management Leasing Program with GE Capital Information Technology Systems to ensure technology utilized in delivering government services is capable of operating efficiently on up-to-date technology at minimum cost to the province.
73 information technology jobs to be created over four years.
Industrial Benefits Agreement:
A $5 million development plan supporting all industry sectors across PEI.
GE Capital Information Technology Systems to maintain a business development office in Prince Edward Island.
GE Capital Information Technology Systems to pursue opportunities for local investment by the company, and other local companies to provide products and services to the worldwide GE organization.
$5 million investment to be leveraged by the province and GE Capital Information Technology Systems to create long-term, sustainable business initiatives.
Agreement Highlights:
Agreements are major step in realizing government's goals to develop industry, create jobs and capitalize on the rapid changes in the IT sector.
Creates new strategic business partnerships that serve the long-term interests of PEI and complements changes in the IT industry.
Creates a new Network Management Centre allowing PEI to tap into the growing provincial, regional and national outsourcing and network management service sectors.
Creates a new Oracle Competency Centre supporting PEI's participation in Oracle-based solutions in the global economy.
Generates $5 million in development investment in PEI industries. GE Capital Information Technology Systems will pursue opportunities for local investment by GE and local companies to supply products and services to the worldwide GE organization.
Agreement allows government to focus its internal IT function on core competencies.
Supports for Local Suppliers:
Installation and warranty work will be contracted directly to Island firms. Projected revenue to Island businesses will exceed $300,000 per year.
Industrial Benefits Agreement requires that GE Capital Information Technology Systems work with government and local private sector companies to stimulate additional growth and job creation in a broad range of industries, including aerospace, bio-technology, diversified manufacturing and the information technology sector.